Electric Meter

Philippines’ Net-Metering Limit May Soon Increase to 1 MW

Last November 2022, the Energy Regulatory Commission (ERC) has approved the Resolution 11, Series of 2022 for posting. The resolution introduces the possibility to utilize renewable energy for end-user’s consumption and export by up to 1MW. Provided that the maximum capacity to export shall not exceed 30% of the nameplate capacity of the Distributed Energy Resources (DER).

To date, we’re still waiting for the resolution to be published in a newspaper of general circulation or in the Official Gazette of the country. Its publication will commence the 15-day period before the rule takes effect.

But as we wait for the revisions in net-metering, let’s first tackle Net-Metering and its benefits.

What is Net-Metering?

Net-Metering is the process of delivering the excess power generated from the solar photovoltaic (PV) installation to the local distribution grid. End-users are credited for the power added to the grid, which allows them to save more in their electricity bills.

To explain further how this works; Solar PV panels harness the sunlight and convert it into electricity. An inverter converts the electricity produced by the panels from direct current (DC) to alternating current (AC), the latter powers up appliances and machineries. But what if the Solar PV System produces more than what you need? This is where Net-Metering comes in, the excess energy produced by the panels will be sent to the local distribution grid and the energy received by the Distribution Utility (DU) will be credited. Along with the application for Net Metering, a bi-directional meter will be installed, too, to  measure the energy used and the excess energy produced.

If you’re planning to have your own Solar PV System installed in the future, here’s a complete list of requirements for the application of net-metering.

Who can apply for Net-Metering?

According to the Department of Energy (DOE), both house owners and commercial establishments with an on-grid or grid-tied solar PV system below 100 kilowatt-peak (kWp) are eligible to apply for Net-Metering. It should also be noted that Net-Metering is governed by law, hence all distribution utilities shall accept a qualified end-users application and shall enter into net-metering agreements.

Is the increase of the current Net-Metering limit necessary?

Philippines’ electricity generation still highly depends on fossil fuels with around 47% of Coal and 22% of Natural Gas. In 2022, three powerplants ran on derated capacity, while seven powerplants went down–six of which are coal-fired powerplants– this led to blackouts that affected over 1 Million Filipinos. And with our energy demand continuously growing, we believe there is a need for additional source of supply. While the government can open up or build new powerplants, the increase of the net-metering limit is a quick way to ease our growing demand.

Our belief is that, through increasing the Net-Metering limit, more business-owners will be comfortable to maximize their roof space and install Solar PV System. With this entrepreneurs will be able to partially energize their own factories or facilities; which lessens their use of energy from the grid, decreasing the impact of inflation onto their business, and  lowering their carbon footprint, too. If their requirement is lower than the solar PV system’s production, they’ll be able to supply the grid with their excess energy, as well. So this increase can benefit many Filipinos, hence why we’re hoping the revisions to the limitations will soon be published.

Have any questions about net-metering or energy? Make sure to drop us a message or send us an email to info@buskowitz.com.

To learn more about the technical side of solar energy, stay tuned on our Social Media @Buskowitz Energy, and on our website at www.buskowitz.com.

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